TRUSTEE SALE AUCTIONS................HAPPINESS & SADNESS.......? part 2

By
Real Estate Broker Owner with People first then business! Ran Right Realty Riverside, Ca BRE LIC #00636943

We learned about the Trustee sale process and what is involved to some degree in the doing of it......as explained in part 1. Now, here is what happens after the property is turned over............

GET RID OF ALL THE OLD STUFF.....YOU NOW OWN THE PROPERTY

When the property is in the hands of the ones who purchased it, they will either move in or FLIP it.......Most are being flipped. You can expect a profit if all goes well of 30%-50% or more on your money returned to you within 6 months time. This can be more or can be less.....there are so many unknowns.

WORTH NOTING: Don't forget that to effectively play this game and profit from it, cash is required...the banks love these offers and pools of investors know this. Whole industry has sprung up from this.

Everyone stands to make money in way way or another here. It is almost like a perverted investment system.

The tenant:.......gets to stay rent free at some point and even qualifies for cash for keys and relocation expenses.

The former owner:....lived rent free for months (years?) and qualifies for cash for keys....

The bank gets:.... their cash infusion from the sale plus applies for 80% of the loss amount which is the difference between the defaulted loan amount and the sale price. EXAMPLE: Defaulted loan amt...$400K...sold at Trustee sale for $200k. Difference of $200k X 80%= $160k. Bank gets $360k plus fees and other little things that are kept secret.

Investor gets:......a nice quick return on his money. It beats the stock market, bank interest or other risk return ventures...

Miscellaneous gainers:.....painters, carpet companies, contractors, home improvement places, title companies, trustees, attorneys, minimum wagers, Real Estate agents..... and ?????

Why would we stop all this....it is the best thing going on right now to make money and wealth with.......and as long as it keeps spitting out these types of results, why would you shut it down? This is NOT CAPITALISM AT ITS FINEST....OR IS IT?

HEY...I GOT AN IDEA. LETS SELL RISKY LOANS TO PEOPLE AND IF THEY DO NOT PAY IT BACK, WE CAN MAKE A FORTUNE IN FORECLOSURES.......EVICTIONS AND ??????

I can do a 10 part series on this subject. In the end, there are those that are very happy and prosperous and then there are those that  are not. When you look at it with a business mindset.....it works. If you smell the breath of the guy who lost his home or the tenant being evicted, it is not something you can easily forget. Justify it all you want, but this system is truly based on the survival of the fittest.....

 and there will be a winner and a loser.....in more ways than one.

                            TRUSTEE SALE AUCTIONS................HAPPINESS & SADNESS.......? part 1

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Topic:
ActiveRain Community
Location:
California
Tags:
foreclosures
trustee sales
evictions
capitalism
banks
reos
auctions
tenants
homeowners
cash for keys

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Rainmaker
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Richie Alan Naggar Author PEARLS SERIES of books

on LIFE and LOVE plus Real Estate too!
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